Force of Attraction Law and Legal Definition

Force Of Attraction is a concept under which a permanent establishment is taxed by the country in which it is located not only on the income and property, but also on all income derived by its foreign head office from source in, and all property owned by the foreign head office situated in, the country where the permanent establishment is located. The Organization for Economic Co-operation and Development (OECD) model treaty does not allow application of it.